Dimension Pharmaceuticals paid cash for the following amounts to fund its research activities: testing materials and supplies,

Question:

Dimension Pharmaceuticals paid cash for the following amounts to fund its research activities: testing materials and supplies, $ 600,000; research consultants, $ 100,000; planning and design consultants, $ 135,000; and general- purpose laboratory equipment, $ 950,000. The equipment has a 10- year useful life and no residual value. Prepare the journal entry required to record Dimension’s research expenditures for the year. The equipment was acquired on January 1.